Page 6 - AsiaElec Week 13 2022
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AsiaElec                                     COMMENTARY                                              AsiaElec











       Biden administration to





       probe claim against SE Asian




       assemblers of solar components







                         THE US Commerce Department on March 28  issued, “For years, Chinese solar producers have
        ASIA             announced a probe into solar panels imported  refused to fairly price their products in the US
                         from four Southeast Asian countries over the  and have gone to significant lengths to continue
                         possibility that the panels are circumvent-  undercutting American manufacturers and
                         ing tariffs imposed to protect domestic US  workers by establishing circumventing opera-
                         manufacturing.                       tions in countries not covered by those duties.
                           The government’s move has been attacked by  We are grateful Commerce officials recognised
                         major panel installers as devastating the indus-  the need to investigate this pervasive backdoor
                         try by increasing costs and undermining job  dumping and how it continues to injure Ameri-
                         growth. Projects could be delayed and jobs lost  can solar producers. Fair trade and enforcement
                         even while the case is being decided, says trade  of our trade laws are essential to rebuilding the
                         groups representing most of the US solar indus-  American solar supply chain and making Solar
                         try, including panel installers.     in America again.”
                           The probe may lead to an expansion to   Solar trade groups were unhappy. “This
                         Southeast Asia of Obama-era tariffs on Chinese  misstep will have a devastating impact on the
                         imports retroactive to March 28, They are cur-  US solar market at a time when solar prices are
                         rently as high as 250%.              climbing, and project delays and cancellations
                           The complaint alleged that panels in question,  are adding up,” said Solar Energy Industry Asso-
                         assembled by companies in Cambodia, Malay-  ciation president Abigail Ross Hopper. “The
                         sia, Thailand and Vietnam, thus illegally evade  solar industry is still reeling from a similar tariff
                         US regulations preventing Chinese imports.  petition that surfaced last year. The mere threat
                           The four countries produce some 80% of  of tariffs altered the industry’s growth trajectory
                         solar modules expected to be imported into the  and is one of the reasons why we’re now expect-
                         US in 2022, said the Wall Street Journal.  ing a 19% decline in near-term solar forecasts.
                           The Commerce Department is responding to  Taking up this case will have a chilling effect on
                         a petition from a California manufacturer, Auxin  the solar industry.”
                         Solar.                                 The American Clean Power Association
                           The petition alleged that the panels are assem-  (ACP) was equally unhappy, expressing “pro-
                         bled from Chinese parts and/or by China-owned  found disappointment”. ACP’s CEO Heather
                         companies and thus violate anti-dumping and  Zichal, White House energy adviser under Pres-
                         countervailing tariffs on Chinese imports.  ident Barack Obama, said: “The Department
                           This petition is important because of the  of Commerce’s decision signals that the Biden
                         fast-growing solar industry and how much it is  Administration’s talk of supporting solar energy
                         dominated by China. The US industry is strug-  is empty rhetoric. If its commitment to a clean
                         gling against cheap imports as well as price rises  energy future is real, the Administration will
                         and supply chain bottlenecks. The dispute pits  reverse this decision immediately. America’s
                         two goals of the Biden administration against  solar workers and the clean energy community
                         each other. The administration wants a robust  are watching and will remember. Overnight, the
                         US solar sector and also as fast a reduction in  Commerce Department ignored precedent and
                         greenhouse gas (GHG) emissions as possible.  subsequently drove a stake through the heart of
                           Auxin Solar’s CEO Mamun Rashid said,  planned solar projects and choked off up to 80%
                         after the Commerce Department decision was  of the solar panel supply to the US. It must fix





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